11-18-2014: Now, the builder IPO market seems to be subsiding.
11-15-2013: Tri Pointe has announced merger with Weyerhaeuser….California developer Shapell Homes is a target for large builders…other IPOs coming and possible Merger & Acquisition (M & A) activity to increase due to private fund investor timelines (getting out while timing is good) and declining financing resources since financing sources are drying up after the housing crisis and CFPB drafting QRM rules to limit the source of home loans and builder profit. Source: WSJ, 11-5-13, B3.
After about 15 years of no builder IPOs, some home builders are seeking to either finance their operations for building homes or reap immediate profit for investors with possible “irrational (real estate market) exuberance” through stock issuance.
Taylor Morrison plans to issue $250 million IPO for their stock. (Make that $602 million) according to the New York Times
4-11-2013 update: Opened for a little more, but not sure if “irrational exuberance”.
Other builders are thinking the same.
What do you think?
– Do we have room for more publicly traded home builders?
– Are we in such good real estate market shape for more publicly traded builders competing with each other?
– Is this a “profit taking” excursion into our collective investment pants?
Source: Wall Street Journal, 12-12-2012, Page C6.
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